David Briggs
07-30-2006, 03:53 AM
Has anyone started using any of ProShare's Ultra and Ultra Short index etfs?
They are intended to magnify the percentage change in daily moves of several major market indicies: Dow, S&P500, NASDAQ100, and S&P Midcap 400. The stated target is 200% of the change in the index on a daily basis.
To benefit from up moves you own the Ultra shares, and to benefit from down moves you own the Ulta Short shares.
I have taken a few different positions in them, and they really do work. The best mirror image behavior for hedging has been the S&P Midcap 400 pair MYY and MZZ. But the Dow pair DDM and DXD work pretty great too.
At the moment, I am unhedged in DXD.
They are intended to magnify the percentage change in daily moves of several major market indicies: Dow, S&P500, NASDAQ100, and S&P Midcap 400. The stated target is 200% of the change in the index on a daily basis.
To benefit from up moves you own the Ultra shares, and to benefit from down moves you own the Ulta Short shares.
I have taken a few different positions in them, and they really do work. The best mirror image behavior for hedging has been the S&P Midcap 400 pair MYY and MZZ. But the Dow pair DDM and DXD work pretty great too.
At the moment, I am unhedged in DXD.